So this is my first post on the diaries and i thought i would start it with this property since it is one that i unfortunately have to do full permits on because of the location and the city inspectors have been watching it like a hawk waiting for some unsuspecting investor to buy it so that they can pounce on them.
Freddie Mac home near Tacoma WA.
Before stats: 4 Bed 2 Bath 1,537 Sqft with an Un-Finished 1041 sq/ft basement and 2 car detached garage, also includes a large pain in the butt 3 story chimney (basement to second floor).
Post Rehab: Will be a 5 bed 3.5 Bath 2,578 Sqft home. Adding a full master suite on top floor with soaking tub and walk-in glass/tiled shower. Finishing entire basement, adding .5 bath there and a bed plus media room. Remove the three story chimney.
Deal stats: Purchase $150,000 CASH, rehab $75,000, Resale at $320,000. WA state has a 1.78% excise tax when reselling on top of property taxes, i pay 5% realtor fees, and then standard closing costs, etc. Projected Profit: $66,000 but i base everything on ROI% so that equates to cash on cash return of 28.9% so long as project doesnt get too crazy.
Before pics: I have plenty of before pics and i am done with the new framing and we are currently doing plumbing and electrical. I will post a bit later the before pics and the current progress photos of the rehab.
After removing the three story chimney, we found that the main floor walls separating the kitchen from living area had two load bearing walls. We had to do a new beam but also replace 8 second floor floor joists so that they reached the new beam. Will have pics up later and progress pics as time continues.
We have another 60 days till completion.
Ugly front of the house...curb appeal will be fixed of course.
Cool, looking forward to seeing the finished project!!
Originally posted by @Tarl Yarber :
So this is my first post on the diaries....
Tarl, thanks for taking the time to share your experience. Best of luck! As a buy-and-hold Tacoma investor, I appreciate what you are doing for the community!
Cool project @Tarl Yarber . Beautiful day today so I think I will get on my bike and ride over to take a look.
Wow, such an ambitious project you got going on! I can't wait to see and hear more about your trials and tribulations. Thanks for sharing!
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!